Week 3: Tourism Industry: Historical Perspective & Leaders

Tourism Industry: Historical Perspective & Leaders

According to the United Nations World Tourism Organizations glossary (United Nations World Tourism Oranization, 2019), tourism is defined as:

“Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure.”

A tourist is generally described as a person visiting a locale outside his or her home vicinity. These may be day, overnight, weekend, or extended visits.

Ueli Gyr (Gyr, 2010) stated that tourism is a globalized system that originated in Egypt during the days of the pharaohs and the pyramids. Likewise, the Greeks traveled to visit the Oracle in Delphi. There were also the Pythian and Olympic Games. As the infrastructure grew and roads were built, more people were able to travel. Gyr also mentioned wealthy Europeans travelling for health retreats and how the pursuit of education resulted in people traveling to colleges and universities. Traveling was associated with the wealthy and educated social classes.

The first commercial tour was in 1841, and it was organized by Thomas Cook (Norah, 2018). Then in 1845, Cook organized a railway trip within England; that was followed by trips to Scotland. In 1951, Cook organized travel and lodging for 150,000 people to visit Prince Albert’s Great Exhibition, which lasted 6 months. Cook started something that would rapidly grow into a family business.

Thos. Cook & Son, The Nile Voyage,1922 Poster
Source: Wikimedia Commons

The first international tourist organization, the International League of Tourists Associations, was founded in 1898 in Luxembourg (Fadeev & Krivosheev, 1979). The number of tourist organizations quickly expanded until there were tens of thousands in the 1970s. To demonstrate the variety of tourist organizations, see the list of international tourist organizations below that was gathered by The Great Soviet Encyclopedia in 1979:

International Tourist Organizations
*Association*	*Year founded and headquarters*	*Recognized organizations*
American Society of Travel Agents	1931 New York	Tourist agencies, carriers, and other travel companies in more than 100 countries
Arab Association of Tourism and Travel Agents	1954 Beirut	Tourist agencies from 14 Arab countries
International Academy of Tourism	1951 Monte Carlo	60 active and corresponding members
International Bureau for Tourism and Youth Exchanges of the World Federation of Democratic Youth	1961 Budapest	40 national organizations
International Bureau of Social Tourism	1963 Brussels	64 national and nine international tourist organizations
International Congress and Convention Association	1962 Amsterdam	Tourist agencies from various countries
International Federation of Travel Journalists and Writers	1954 Brussels	28 national organizations
International Orienteering Federation	1961	18 national organizations
International Sightseeing and Tours Association	1954 Vienna	140 tourist organizations from various countries
International Student Travel Conference	1968 Zürich	41 national organizations
International Touring Alliance	1919	138 associations, including 65 in Europe, 26 in Asia, 23 in Africa, 21 in America, and three in Oceania
International Trade Union Committee on Social Tourism and Recreation of the World Federation of Trade Unions	1964 Prague	Trade union tourist organizations in 14 countries
Latin American Confederation of Tourist Organizations	1957 Buenos Aires	Tourist agencies from 18 Latin American countries
Pacific Area Travel Association	1951 San Francisco	More than 1,000 tourist organizations in 29 countries and territories
Universal Federation of Travel Agents’ Associations	1966 Brussels	National associations of tourist agencies from 71 countries
World Association of Travel Agencies	1949 Geneva	286 tourist companies in 93 countries
World Tourism Organization	1975 Madrid	102 sovereign states and 39 affiliate members

Events Impacting Tourism

The World Travel & Tourism Council (World Travel & Tourism Council, 2019) has identified 11 disruptive moments in the history of travel and tourism:

In 1900, the first cruise ship, the Prinzessin Victoria Luise, was launched. The Hamburg-America ship included 120 cabins, library, gymnasium, and a darkroom. Today the cruise line industry brings in $39.6 billion from its 22.2 million passengers per year.
In 1920, standardized passports were issued. The International Civil Aviation Organisation holds the responsibility for all passports throughout the world. In 2012, 110 million US citizens held passports.
In 1926, the Michelin Guide introduces star ratings. The initial purpose was to sell cars (and the demand for tires); however, Michelin’s stars became the standard for fine dining. The ratings are still held in high esteem.
In 1930, the jet engine was patented by Frank Whittle. In 2013-2014, there were 3.3 billion passengers on 33.4 million commercial flights.
In 1948, the Berlin Airlift began resulting in 2.5 million people receiving necessary supplies. Because of the vast number of flights in and out of Berlin (with 1,383 landing in one day), the civilian air traffic control was created, and it is still used today. In 2013, the Hartsfield-Jackson Atlanta International airport handled an average of 6,835,411 passengers per month.
In 1950, the first holiday package was sold by Horizon Holidays. The package included flight from London Gatwick to Corsica with beach tent accommodations. The initial target market was the English middle class, however, it lead to a tourism boom. In 2013, 41% of the British population booked overseas holiday packages.
In 1960, an automated booking system, Sabre, went online. While it was originally designed for American Airlines, Sabre Global Distribution System (along with Travelport and Amadeus) handles reservations for multiple airlines. In 2013, there were 400,000 travel agents, 400 airlines, and 125,000 hotel properties using the system.
In 1971, the airline industry was deregulated in Europe and the US. This deregulation led to low-cost and no-frills air travel. Southwest Airlines was the first to introduce a low-cost carrier model, and Southwest is the largest low-cost airline in the US. In Europe, Ryanair is the busiest low-cost international airline. In 2013, Southwest had 131.1 million passengers, and Ryanair had 81.6 million passengers.
In 1985, the Schengen Agreement was signed that abolished the internal border controls in the European states. That led to free movement for the European Economic Community citizens between those countries. The Community now covers 40 million people in 26 countries.
In 2001, the 9/11 catastrophe happened, and airport security processes were tightened. Travelers are now profiled, placed on no-fly lists, required to limit liquids, and screened thoroughly. Airlines must now pay upwards of $8.55 billion dollars for security. In 2001, airport security could process 350 people per hour; however, in 2013, that number was down to 150.
In 2003, after the 2000 crash of the Air France Concorde, the Concorde was officially retired. That meant the end of the supersonic commercial travel. Compared to the Boeing 747, the Concorde was more fuel efficient (15.8 mpg for fuel compared to 46.4), took less time between London and New York (3.5 hours compared to 6), and reached a higher altitude (60,000 feet compared to 40,000).

Tourism Industry Sectors

As mentioned in the first week, there is some overlap between the hotel and tourism industries. According to Revfine (Revfine, 2019), there are these sectors:

Transportation: Includes road, rail, sea, and air travel.
Accommodations: Includes where people stay, rest, and sleep.
Food and Beverages: In addition to providing sustenance, food and beverage establishments are social areas where people meet, network, and enjoy themselves.
Entertainment: Includes events, activities, retail, and historical and educational opportunities that draw tourists to the location.
Connected Industries: Includes financial services, tour guides, travel agents, visitors centers, and educational institutions.

Tourism Leaders

Thomas Cook

Tourism Pioneer Thomas Cook
Thomas Cook; Source Wikipedia Commons

As mentioned previously, Thomas Cook was the first to organize tours as we know them today. His son, John, expanded travel with overseas excursions and vast expeditions. The Thomas Cook company has been bought and sold many times over the years, but it remains with the Thomas Cook name (Thomas Cook, 2019). Sadly, in September 2019, the parent company in the United Kingdom filed for bankruptcy. The future of the Thomas Cook company is unknown at this time because several other countries remain financially secure.

Albert Ballin

Albert Ballin; Source Wikipedia Commons

In 1891, Albert Ballin sailed the Augusta Victoria from Hamburg to the Mediterranean Sea, which was considered the first cruise ship. On June 29, 1900 in Hamburg, he launched the first purpose-buillt cruise ship the Prinzessin Victoria Luise.

Augusta Victoria.jpg
August Victoria; Source Wikipedia Commons

Richard Downing Pope, Sr.

Dick Pope, Sr.; Source Wikipedia Commons

Dick Pope, Sr. founded Cypress Gardens in Winter Haven, Florida. Pope was the instrumental in the growth of water skiing and for theme parks to be tourist destinations.

Gutzon Borglum

Gutzon Borglum.jpg
Gutzon Borglum; Source Wikipedia Commons

John Gutzon de la Mothe Borglum was the sculptor behind the creation of Mount Rushmore. While the plan was for public art in the mountain, each year, Mount Rushmore National Memorial receives over 3 million tourists from around the world (Black Hills & Badlands, 2019).

Walt Disney

Tourism Pioneer Walt Disney
Walt Disney; Source Wikipedia Commons

Walt Disney created the themed entertainment parks Disneyland and Disney World. These parks allowed visitors to experience Disney’s cartoon characters and worlds. There are Disney-themed parks in Paris, Hong Kong, Shanghai, Tokyo, and the U.S. In 2017, Disneyland in California, the original Disney-themed park, had over 18.3 million visitors; that same year, Magic World at Walt Disney World in Florida, had over 20.4 million visitors (Hamer, 2018).

For More Information

References

Black Hills & Badlands. (2019, September 22). Retrieved from Mount Rushmore National Memorial: https://www.blackhillsbadlands.com/parks-monuments/mount-rushmore-national-memorial

Fadeev, B. G., & Krivosheev, V. M. (1979). Tourist Organization from The Great Soviet Encyclopedia. Retrieved from The Free Dictionary by Farlex: https://encyclopedia2.thefreedictionary.com/Tourist+Organization

Gyr, U. (2010). The History of Tourism: Structures on the Path to Modernity. Zurich: European History Online.

Hamer, L. (2018, June 22). Showbiz Cheat Sheet. Retrieved from Every Disney Park in the World, Ranked by Popularity: https://www.cheatsheet.com/money-career/every-disney-park-in-the-world-ranked-by-popularity.html/

Norah, J. (2018, March 5). Travel History: The Tale of Thomas Cook, Father of Modern Tourism. Retrieved from Independent Travel Cats: https://independenttravelcats.com/travel-history-the-tale-of-thomas-cook-father-of-modern-tourism/

Revfine. (2019, September 22). Retrieved from Tourism Industry; Everything You Need to Know About Tourism: https://www.revfine.com/tourism-industry/#what-is-the-tourism-industry

Thomas Cook. (2019, September 22). Retrieved from Thomas Cook History: https://www.thomascook.com/thomas-cook-history/

(2019). Travel & Tourism: Benchmarking Research Trends 2019. London, UK: World Travel & Tourism Council.

United Nations World Tourism Oranization. (2019, September 22). Retrieved from Basic Glossary: http://cf.cdn.unwto.org/sites/all/files/docpdf/glossaryenrev.pdf

World Travel & Tourism Council. (2019, September 22). Retrieved from 11 Disruptive Moments in Travel & Tourism History: https://www.wttc.org/blog/infographics/11-disruptive-moments-in-travel-and-tourism-history/

Source: Velda Arnaud, Blue Mountain Community College, Pendleton, Oregon